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Unfair Competition

San Diego Unfair Competition Lawyer

What is Unfair Competition in Business?

In a perfect world, everyone is free to create their own business and thrive with no other company trying to harm their brand through unethical means. Unfortunately, many companies will resort to unfair competition to succeed beyond their competitors. The term “unfair competition” describes an array of harmful business practices used to either bolster one’s own profits or bring harm to another company.

Our San Diego unfair competition attorneys understand how state and federal laws aim to prevent this type of behavior, and we investigate whether companies are engaging in unlawful practices. If another company is using malicious methods to bolster their own businesses or if you are facing unjust accusations of unfair competition, speak with us. We can meet with you, analyze your options and chart a path towards a successful resolution for you and your business.

We are ready to guide you through this time. Contact Purdy & Bailey, LLP at (858) 360-7080.

Unfair Competition Laws

Laws on unfair competition are intended to protect companies while establishing an equitable, competitive market. They are generally governed by state common law, but federal statutes such as the Federal Trade Commission Act and antitrust laws also play an important role. The FTC Act, for example, prohibits "unfair methods of competition" and "unfair or deceptive acts or practices."

Other unfair competition laws include:

  • The Sherman Antitrust Act of 1890 is a federal law enacted to prevent monopolistic business practices and promote economic liberty. It prohibits activities that restrict interstate commerce and competition in the marketplace, aiming to preserve free and unfettered competition as a rule of trade.
  • The Clayton Antitrust Act of 1914 is aimed at strengthening the Sherman Act by further defining unethical business practices. It targets specific anti-competitive actions like price discrimination, tying contracts, and unlawful corporate mergers or acquisitions. This Act bolsters competition and curbs monopolies

State laws also safeguard nearly all information that offers businesses an advantage over other businesses in the same industry:

  • The Cartwright Act is California's primary state antitrust law, enacted in 1907. It prohibits anti-competitive activities, mirroring federal antitrust laws. The Act declares certain trusts as unlawful, aiming to preserve competition. It specifically targets combinations of capital, skill, or acts by two or more persons that restrict fair trade.
  • The California Uniform Trade Secrets Act (UTSA) provides a legal framework for the protection of trade secrets. It prohibits misappropriation of confidential business information, including theft, bribery, misrepresentation, breach, or inducement of a breach of a duty to maintain secrecy.
  • The California Unfair Competition Law (UCL), codified in Business & Professions Code section 17000, outlaws deceptive or misleading advertising as well as unlawful, unfair, or fraudulent business practices.

Antitrust laws prevent businesses from engaging in practices that restrict fair trade and competition. Additionally, laws like the Uniform Deceptive Trade Practices Act (UDTPA) exist to protect businesses and consumers from deceptive business practices. These laws collectively ensure that businesses can compete fairly, without fear of deception or wrongful practices impeding their economic success.

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